CENTS Business and Idea Evaluator Spreadsheet

[SD Entrepreneur]

What's up everyone?

After reading and re-reading @MJ DeMarco's thread: The CENTS Business Commandments For Entrepreneurs I wanted to start analyzing some ideas of my own using the commandments.

I created a CENTS Business and Idea Evaluator spreadsheet here. The purpose of CENTS is to improve your probabilities for creating a business that can change your life forever.

The purpose of the spreadsheet is to have a quick, visual method for analyzing businesses and ideas based off the CENTS commandments without having to open/find/re-read relevant info in the books/forums.

A few notes:

• To copy the sheet and edit it on your own, go to FILE --- DOWNLOAD AS in the menu to save it
• If you view the notes inside the brief description of each commandment, you will see the full text from the original thread mentioned above
• I added step 3 since there are uncertainties when evaluating a business idea. For example, you may not know or may have to research whether or not the business can provide the necessary relative value required. This area allows for adding your own notes/thoughts/questions for further research/evaluation

If anyone has feedback/suggestions let me know and I can consider updating the master sheet.

We all think, visualize and learn differently, hopefully this framework is helpful for others as it is for me (I'm sure some people hate spreadsheets).

Good luck and let's make it happen!

 

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[MJ DeMarco]

Nice!

I've been wanting to do an evaluator which involved weights and a scoring system, since CENTS and its structure is not equally weighted.

Commandment​	Weight (Scale of 1-3)​
Control Entry Need Time Scale (GRADE 1-10)	1 2 3 1 3 (MAX SCORE = 100)

So instead of simply saying "YES" or "NO" to each, you would grade the commandments 1 thru 10.

Given a hypothetical business idea/concept, lets say this is the weight:

Need = 10 (x 3) - a great need!
Entry = 7 (x 2) - pretty difficult to start!
Control = 4 (x 1) - not a lot of control, some control risks!
Time = 9 (x 1) - can be automated at some point
Scale = 10 (x 3) - huge market!

So the business idea would rate as a (30 + 14+ 4 + 9 + 30) 87 out of 100 -- pretty good!

 

[SD Entrepreneur]

Nice!

I've been wanting to do an evaluator which involved weights and a scoring system, since CENTS and its structure is not equally weighted.

Commandment Control Entry Need Time Scale (GRADE 1-10)

Weight (Scale of 1-3) 1 2 3 1 3 (MAX SCORE = 100)

So instead of simply saying "YES" or "NO" to each, you would grade the commandments 1 thru 10.

Given a hypothetical business idea/concept, lets say this is the weight:

Need = 10 (x 3)
Entry = 7 (x 2)
Control = 4 (x 1)
Time = 9 (x 1)
Scale = 10 (x 3)

So the business idea would rate as a (30 + 14+ 4 + 9 + 30) 87 out of 100 -- pretty good!

Great idea MJ, I was thinking of something similar when creating it since there are so many variables. Let me see what I can do with those weights/suggestions... stay tuned!

 

[Jon L]

I just ran my new business through that. One question I have is, 'compared to what?' Tesla, for example, is an incredibly difficult business to start. Is that a 10? If that's the case, my 'entry' rating is a 2 or 3. But, if you compare my business to a swimming pool maintenance service, its a lot more difficult.

 

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[Madman1996]

awesome this is gonna benefit alot of people thankyou very much
would this approach be good if i say well it violates some of the commandments
but certainly not the need part iam gonna pursue it anyway iam a newbie at the moment

huge thanks to MJ and the others This forum is mind blowing this forum should me giving on school like homework haha

 

[SD Entrepreneur]

@MJ DeMarco, spreadsheet updated to a weighted grading scale for each commandment! Let me know your thoughts...

Glad you found it useful @Madman1996, as MJ mentioned execution could overcome some of the lower scores (ex. Entry).

@Jon L, I would put a Tesla at a 10 (very difficult to start- as MJ stated: "the harder something is to solve, the greater the opportunity") and a swimming pool maintenance company at a 2 or 3 (easy to start- "the easier the opportunity, the worse it is")

 

[Madman1996]

@MJ DeMarco, spreadsheet updated to a weighted grading scale for each commandment! Let me know your thoughts...

Glad you found it useful @Madman1996, as MJ mentioned execution could overcome some of the lower scores (ex. Entry).

@Jon L, I would put a Tesla at a 10 (very difficult to start- as MJ stated: "the harder something is to solve, the greater the opportunity") and a swimming pool maintenance company at a 2 or 3 (easy to start- "the easier the opportunity, the worse it is")

true that i think it was a post something about that cents can be destructive because of to much thinking and not executing and the only way money moves is value and need i hope i'm not misquoting anybody all the best everyone

 

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